{"id":14480,"date":"2022-11-14T09:15:43","date_gmt":"2022-11-14T09:15:43","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/the-seven-days-that-rocked-the-crypto-world\/"},"modified":"2022-11-14T09:15:43","modified_gmt":"2022-11-14T09:15:43","slug":"the-seven-days-that-rocked-the-crypto-world","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/the-seven-days-that-rocked-the-crypto-world\/","title":{"rendered":"The Seven Days that Rocked The Crypto World"},"content":{"rendered":"

(Originally posted on : Crypto News – iGaming.org )<\/b>
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Even for someone who has owned cryptocurrencies for a decade, the past week has been extraordinary. Sentiment in the crypto market was neutral and even equally hopeful when Bitcoin was worth 21 thousand euros. Then, out of nowhere, FTX dragged all cryptocurrencies into the abyss.<\/p>\n

Troubled Crypto History<\/h2>\n

Bitcoin is less than 14 years old, and a crypto market like ours is less than 10 years old. But there are some events that no one can resist. In 2013, the online marketplace Silk Road was blown up<\/a> by the FBI, followed by the hack of cryptocurrency exchange Mt. Gox<\/a> in 2014.<\/p>\n

In 2016, Decentralized Autonomous Organization (DAO) smart contracts were hacked, leading to the separation of Ethereum Classic from Ethereum. A year later, it was Bitcoin<\/a>\u2019s turn, and in August 2017, the blockchain split in two and Bitcoin Cash<\/a> was born.<\/p>\n

This year we have experienced two important and unforgettable moments. In May, we saw the downfall of Terra Luna<\/a> and the cryptocurrency exchange FTX this week. The difference is that the operator of FTX was well-connected in the political world and went on to become a selfless billionaire.<\/p>\n

The crypto world is moving fast and our memories sometimes fail, so a summary and overview of last week\u2019s events.<\/p>\n

Sunday, November 6: Binance sells FTT<\/h2>\n

On Wednesday, Nov. 2, CoinDesk released an analysis of Alameda Research\u2019s troubles balance sheet backed up by only FTT. Consequentialy, on Sunday, November 6, Binance CEO Changpeng Zhao tweeted<\/a> that they would start to sell all of FTX\u2019s tokens.<\/p>\n

Alameda CEO Caroline Ellison said<\/a> CoinDesk\u2019s filing was incomplete:<\/p>\n

Monday, November 7: No problem<\/h2>\n

Sam Bankman-Fried, CEO of FTX, said there was nothing wrong with his stock market and said that competitors were trying to catch the exchange with false rumours. \u201cFTX is good\u201d, Bankman-Fried confirmed saying that FTX had enough to cover all client positions, that they has processed all withdrawals and would continue doing so.<\/p>\n

Monday was marked by a dispute between Binance and FTX. The market sentiment dropped and resulted in the price of FTT beginning to drop significantly.<\/p>\n

Tuesday, November 8: Binance wants to buy FTX<\/h2>\n

Binance saw FTX in trouble and tried to save the company by announcing<\/a> it would take over FTX to beat the competition.<\/p>\n

Bankman-Fried said<\/a> FTX has agreed to an acquisition agreement with Binance for FTX\u2019s operations outside the U.S.<\/p>\n

\u201cOur teams are working on clearing out the withdrawal backlog as is,\u201d he tweeted. \u201cThis will clear out liquidity crunches; all assets will be covered 1:1. This is one of the main reasons we\u2019ve asked Binance to come in. It may take a bit to settle etc. \u2014 we apologize for that.\u201d<\/p>\n

Wednesday, November 9: Binance-FTX Deal cancelled<\/h2>\n

Binance saw the ledger and the numbers and thought: We don\u2019t want anything to do with this<\/a>. FTT price drops 80%, Bitcoin falls below $18,000.<\/p>\n

\u201cIn the beginning, our hope was to be able to support FTX\u2019s customers to provide liquidity, but the issues are beyond our control or ability to help,\u201d Binance said<\/a> in a statement.<\/p>\n

Bloomberg writes that the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) are investigating FTX. These are the two U.S. government agencies that regulate the market.<\/p>\n

Thursday, November 10: Sorry<\/h2>\n

On Thursday, Bankman-Fried apologized on Twitter. \u2018I\u2019m Sorry. That\u2019s the biggest thing,\u201d he said<\/a> in a tweet. \u201cI fucked up and should have done better. \u201d<\/p>\n

The CEO added that the company is doing everything possible to improve liquidity and that the combined market value of the global firm\u2019s assets and collateral exceeds customer deposits.<\/p>\n

Bankman-Fried added that Alameda Research will exit the deal. The Wall Street Journal, citing investor conversations, reported that FTX has lent about $10 billion to Alameda Research.<\/p>\n

Reuters wrote that Bankman-Fried did not notify other executives of the transfer of funds to Alameda.\u00a0Tether has been ordered by the government to freeze $46 million from FTX.<\/p>\n

In addition, there are signs that FTX US may also be in trouble, contrary to what the CEO has previously said, that the activities of the international and U.S. branches are being separated.<\/p>\n

Friday, November 11: FTX files for bankruptcy<\/h2>\n

The FTX saga came to a head on Friday, when FTX and more than 100 companies, including those associated with FTX US, filed for bankruptcy protection.<\/p>\n

Saturday, November 12: FTX hacks claims<\/h2>\n

After a long week, it\u2019s finally Saturday and FTX claims to have been hacked. Rumors go around that FTX insiders are responsible and finding a safe exit with funds.<\/p>\n

Sunday, November 13: Criminal Investigations into FTX<\/h2>\n

Reports of the fallen crypto exchange being under investigation quickly spread, In the Bahamas, where FTX was headquartered, regulatory task forces are closing in<\/a> on Bankman-Fried and his platform.<\/p>\n<\/p><\/div>\n